Squamish Nation Business Plan Template



HARWOOD CAMPGROUNDS

Business Plan

March 15, 2003

Harwood Campground is a hypothetical on-reserve campground. Any similarity to an existing or proposed campground is coincidental.

In this scenario Harwood Campgrounds Principals have written this plan in order to secure financing as well as confirm the viability of this venture. The two partners have a total of $11,500.00 of equity and will be applying for a $70,000.00 First Citizen Fund loan through the provincial ACC for a total project cost of $81,500.00 in order to develop a 12-acre lot into a campsite on the Tla-o-qui-aht First Nation reserve on the east coast of Vancouver Island.

Russell Sam

Harwood Campground

4567 Longbeach Road,

Tofino, BC V0R 2Z0

Ph: (250) 555-1212

Fax: (250) 555-1234

Executive Summary:

Applicant/Company Information

Business Name: Harwood Campgrounds

Address: 4567 Longbeach Road, Tofino, BC V0R 2Z0

Phone: (250) 555-1212, Fax: (250) 555-1234

Contact Person: Mr. Russell or Dan Sam

Business Structure: Corporation

Banking Information

Bank: Royal Bank of Canada

Address: 2599 Cliffe Ave - Unit A Courtenay, BC  V9N 2L5

Phone: 1-800-769-2520

Contact: Phyllis Newman, Business Accounts Manager

Anticipated Start Date:

Harwood Lake Campgrounds is a new business scheduled to start operations April 15, 2003.

Business concept:

Harwood Campground is situated on the waterfront in Tofino, the gateway to Clayquot Sound, on the east coast of Vancouver Island. Initially the business will offer 20 tent sites, each big enough for four people, and 10 fully equipped RV sites. The campground will also offer a small laundry room and shower room, recreational activities, including: guided cultural hiking tours, summer fishing tours & whale watching, mountain biking trails, bird & wildlife viewing, photography, surfing, beach volley-ball, picnic tables and barbequing.

Mr. Dan and Russell Sam have cleared the land over the past twelve months and hold Certificates of Possession on this land and have received a BCR from the Tla-o-qui-aht First Nation for this project, both of which are attached in the appendices of this document.

Financing will be sought through All Nations Trust ACC for a $70,000.00 First Citizens Fund loan, when added to the Principals equity of $11,5000.00 represents a total project cost of $81,500.00. These funds will be used to establish the hydro and electrical infrastructure as well as place the RV pads, equip the office, make improvements to the trailer and develop brochures, business cards, and a website to market the campground.

Business operations

Harwood Campground will operate year round with 3-5 anticipated permanent RV clients, seasonal tent camping clients, and will be sold as a safe, family oriented destination that is easily accessible to Lower Mainland and Victoria region families.

Mr. Russell Sam already owns an aluminium skip boat, valued at $10,000.00, which will be used for fishing and whale watching tours, and Mr. Dan Sam has a 12’x 40’ trailer, valued at $13,000.00, on the property which will serve as the office, laundry room, and shower facility for campers. The washer and dryer will be leased at a rate of $150.00 per month - a copy of the lease agreement is attached in the appendices of this document.

Harwood Campground will be incorporated for liability reasons, upon approval of funding. Mr. Russell and Dan Sam have already received a BCR from the Tla-o-qui-aht First Nation, which is attached in the appendices of this document.

Employees:

Mr. Russell and Mr. Dan Sam will be the sole owners and operators of the facility. It is anticipated that with a projected 10% growth per annum that the company will hire two seasonal students in the summers within the first five years of operation.

Management team background and experiences:

Mr. Russell Sam has been working with BC Parks Provincial Campgrounds at the

Cathedral Grove Resort & Campground as a site attendant from 1996-2002 and was responsible for all aspects of operations and site maintenance. Prior to this Russell was a fisherman for ten years and has an excellent knowledge of the cultural and traditional use of the lands in the area. Russell will be the campgrounds full-time Manager with Mr. Dan Sam acting as the site’s full-time Assistant Manager.

Mr. Dan Sam has been working as a counsellor with the Tla-o-qui-aht First Nations for ten years and holds his counselling degree from Kwantlen College and has worked extensively with Russell to clear the land and plan all aspects of operations. Prior to this Dan has five years experience as a fisherman. Both Mr. Russell and Mr. Dan Sam’s Resume and certificates are attached in the appendices of this document.

Market Niche:

Harwood Campgrounds has a unique market advantage with a waterfront property in world famous Tofino and with the property being CP land there are no on-going lease costs or facility rental costs associated with operations. In addition, the cultural knowledge and skills that both principals bring to the operation will enhance the tourism experience for campers who for the region have a greater interest in aboriginal tourism products. Harwood Campgrounds will be located in beautiful Tofino - commonly referred to as the gateway to pristine Clayquot Sound on the West Coast of British Columbia. The site is only 4km. away from the Pacific Rim National Park, which features many boardwalks and a world famous old growth rainforest. In addition, whale watching is featured in the region, as each year, 20,000 Gray Whales migrate past Tofino on their way to their summer feeding grounds in the waters off Baja Mexico. Other regional features include Longbeach where surfers challenge the breakers at Long Beach, natural hot springs in Hot Springs Cove, the archipelago of islands in beautiful Clayquot Sound where kayakers abound along with scuba diver and underwater snorklers.

Dan Sam is also a First Nations artist and will be painting the signs for the camp and the trailer to enhance the Tla-o-qui-aht First Nations artistry and unique features of this campground for their clients.

Client Base:

According to BC Statistics 1998 tourism is the second largest industry in BC and camping represents 13% of this market. Further, tourism revenues in B.C. are up in 2001, reaching a new high of $9.2 billion in 1999, up 4.9 percent over 1998.  The province also enjoyed a record 22.3 million visitors.  BC Statistics also reported that Harwood Campgrounds two primary activities of developed camping and hiking would experience a 49% and 57% growth from 1995-2050.

A BC Tourism study completed in 1998 found that eco-tourism in British Columbia generated $892 million in revenue in 1997 and employed more than 13,000 people, an 11% increase from the previous year. The second strongest area in tourism in BC is aboriginal tourism. In addition, the Canadian Tourism Council also stated that a survey conducted indicates that 25% of the international tourists showed interest in cultural experiences.

Factors for Success:

Harwood Campgrounds will operate with a strong experienced manager and has a unique product and world famous location within a growing and strong tourism market. The seasonality of the business is offset through the promotion and recruiting of long-term permanent RV residents who are conservatively estimated to number only three in the first year of operation.

Financial information for this Operation

|Item |Cost |

|10 RV Pads | $15,000 |

|Office furniture, computer, printer | $5,000 |

|Hydro hook ups | $30,000 |

|Electrical hook ups | $20,000 |

|Incorporation Costs | $1,500 |

|Trailer Improvements | $500 |

|Marketing: Brochures/ Website/ BC Ferries | $3,700.00 |

|Operating Capital | $ 5,800.00 |

|Total Required | $ 81,500.00 |

| Less Owners Equity |- $ 11,500.00 |

|Total Financing Required |= $ 70,000.00 |

Expected sales from the first three years of operations:

Year 1 Year 2 Year 3

$ 101,100.00 $ 105,600.00 $ 110,550.00

Table of Contents

Section A Business Plan:

Business Description

Business and Industry Market Analysis

Operational Plan

Organizational Plan: Management and Staffing

Marketing Plan & Competition

Business Feasibility & SWOT Analysis

Section B Financial Projections:

12 month cash flow projections

3 year cash flow projections

3 year projected income statement and balance sheet

Section C Supporting Documents:

A. Russell Sam Resume

B. Dan Sam Resume

C. Band Council Resolution (BCR)

D. Area, Regional and Site Maps

E. Washer / Dryer Lease Agreement

F. Boat Assessment

G. Trailer Assessment

H. RV Pad Quote

I. Hydro hook up Quote

J. Water hook up Quote

K. BC Ferries contract

Business Plan

1. Business Description

a. Type of business:

Business Structure: Corporation

Name % ownership

1. Russell Sam 50 %

2. Dan Sam 50 %

Percentage of Aboriginal ownership: 100 %

b. Products or services the business will provide:

Harwood Campground will be a fully equipped, soft activity facility catering to families. It is situated in an area that is a destination spot for tourists looking for a beautiful and safe place to relax and enjoy a range of outdoor activities.

Initially the business will offer 20 tent sites, each big enough for four people, and 10 fully equipped RV sites. The campground will also offer a small laundry room and shower room, recreational activities, including: guided cultural hiking tours, summer fishing tours & whale watching, mountain biking trails, bird & wildlife viewing, photography, surfing, beach volley-ball, picnic tables and barbequing.

Mission Statement:

Harwood Lake Campground Co. will offer high quality customer service and safe, family oriented camping facilities as a profit and growth oriented business.

2. Business and Industry Market Analysis

a. Industry Sector:

Tourism

b. A history of the industry:

Camping provides an opportunity to experience nature and the environment firsthand. Campers participate in fishing, hunting, swimming, wildlife viewing, and nature photography activities. Just as importantly, camping helps people escape the stress of urban life while providing physical benefits, including excercize from hiking, swimming and many other activities. Scouts, Girl Guides, and many other youth organizations believe that camping instills confidence in youth and offers older campers opportunities to challenge themselves in unfamiliar surroundings.

Camping takes many forms. In the 19th century American naturalist and explorer John Muir routinely set off into the woods with little more than a sack of food and a journal to write his thoughts. In the early 20th century American conservationist and philosopher Aldo Leopold paddled a canoe and rode horseback through the wilderness of the Midwest while taking as a writer. The works of Muir and Leopold, as well as writings by Americans Edward Abbey and Henry David Thoreau, have inspired others to spend time in the wilderness.

Modern camping enthusiasts may share the emotions of earlier naturalists, along with their desire to experience nature, but they usually camp in commercial campgrounds, which serve as campsites for RV and backpackers on the outskirts of national and state parks, along highways throughout Canada and along both coastlines.

Currently, there are over 230 campsites in B.C. Provincial Parks and numerous private ones, 23% of these on Vancouver Island. The total number of recreational areas, provincial parks and ecological reserves equals a little more than 800. Most campsites are either within or next to provincial parks. Provincial park campsites recorded 2.6 million visits in 2001, down from the year before. Vancouver Island parks, however, bucked the downward trend, with visits increasing by two percent in 2001. Campgrounds on the Island logged 489,000 visits and parks recorded 3.8 million day trips that year. On average, mid-Island campsites record an average of 61,000 overnight visitors each season. Independent campgrounds are generally less feasible due the land lease or purchase costs associated. This unique opportunity for Harwood Campgrounds to compete directly with industry campgrounds is a direct result of no lease or purchase costs associated with the site’s CP designation.

The campground business is undergoing some changes to meet consumer demand for a higher level of convenience and a wider choice of recreational activities, which Harwood Campground will be able to fulfill. Studies show that successful campgrounds offer a range of on-site outdoor activities, as well as making the most of opportunities provided by the surrounding wilderness or park areas as Harwood Campgrounds does.

c. Direct and Indirect Competition:

While the competition is intense on the Island with 45 campsites currently in operation,

there is only one campsite listed for Tofino “Pacific Rafting Adventure Resort”. This company is geared more towards extreme adventure tourism and does not cater to the same soft adventure client that Harwood Campground would and therefore are considered indirect competitors.

Indirect competitors for Harwood Campground are six RV Campgrounds, three of which cater to specific target markets of: golf, fishing, and surfing. Of the remaining three, two are listed as resorts and represent a higher cost product. The sixth campground, Beach Front Campground would be considered a direct competitor. Beach Front Campgrounds prices are slightly higher, however they do offer a greater variety of site amenities but target primarily RV Campers.

Although competition in the camping sector is intense, sales for the Vancouver Island industry have increased annually. Despite the competition, there are plenty of opportunities for newer, high-end campsites with all the facilities and conveniences. To be successful within the industry a sites location by a lake or ocean and in a superior natural setting is more important than ever. Proximity to other tourist attractions, such as a nearby town or city, is also an advantage.

3. Operational Plan

a. Location & Facilities:

Tofino is commonly referred to as the gateway to pristine Clayoquot Sound on the West Coast of British Columbia. Only 4km. away is the Pacific Rim National Park, which features many boardwalks and a world famous old growth rainforest. Whale watching is featured in the region, as each year, 20,000 Gray Whales migrate past Tofino on their way to their summer feeding grounds in the waters of Baja Mexico. Other regional features include Longbeach where surfers challenge the breakers at Long Beach, natural hot springs in Hot Springs Cove, the archipelago of islands in beautiful Clayoquot Sound where kayakers abound along with scuba divers and underwater snorklers.

Harwood Campground is easily accessible by Island and Lower Mainland residents, and during peak camping season, May, June, July and August, the campground will take advantage of high volumes of tourists traveling on BC Ferries.

Harwood Campground will be a 12-acre property featuring 20 tent sites and 10 RV sites. The property is waterfront and will feature Tla-o-qui-aht First Nations art designs on the offices/washrooms/laundry room as well as offer cultural guided hiking tours of the area.

An area, regional, and site map is attached in the appendices of this document.

b. Production Process:

With Mr. Russell Sam responsible for all aspects of administration, marketing and management Mr. Dan Sam will focus efforts on artwork, site maintenance, and customer service.

The company will advertise the campgrounds through various avenues, including Internet and BC Ferries brochure placement and will take reservations by phone with a 50% deposit, which is industry standard. Services such as guided cultural hiking tours and fishing tours can be offered at this time and will be undertaken by Mr. Russell Sam who possesses and excellent knowledge of Tla-o-qui-aht First Nation history and culture. These aspects of operations are anticipated to represent less than three percent of overall revenues in the first year of operations, however as demand for this unique service increases Mr. Sam will hire a site secretary within the first five years of operation.

c. Action Plan:

Pre-Opening Goals

• Secure loan of $70,000 to develop site.

• Meet with local fire services department to discuss fire safety regulations.

• Schedule contracts and contractors to establish infrastructure: hydro, water, sewage, and laying RV pads and confirm dates for start/end of construction.

• Buy liability insurance.

• Begin minor construction work: paint trailer, install leased coin operated washer/ dryer.

• Purchase office equipment, furniture and computer and establish administrative systems.

• Open a merchant’s account with a bank in Duncan, and set up a direct debit and Visa payment system.

• Undertake First Aid Training for both Principals

• Create advertising and promos and waiver form for customers to sign to limit responsibility on the campground

• Identify internet hosting company to register website name and establish website

• Open for business April 2003.

• Establish links with target communities, Victoria and the Lower Mainland, through the BC Ferries and Chambers of Commerce.

A final compliance inspection under the Fire Services Act and Building Code is scheduled for April 10 2003. The campsite should be fully operational by April 15, 2003.

Post Opening Goals

MEDIUM-TERM

• Increase market share.

• 10% growth per annum

• Lease pop machine

LONG-TERM

• Add 10 more RV sites, to total to 20.

• Purchase and rent out kayaks and canoes.

• Establish plan to sell convenience items

d. Environmental audit:

Due to the nature of the business it is not anticipated that Harwood Campgrounds will require an environmental audit.

e. Bookkeeping:

Ms. Dolores Baker will be the company’s bookkeeper and Mr. Tom Parker, CA will complete the companies annual financials.

f. Major Suppliers:

Supplier/ Location Supplies Terms

Timmins Construction, Tofino RV Pads COD

Tofino Regional District

& Cates Contracting, Tofino Hydro/ Sewage/ Water COD

Valley Gardens, Tofino Grounds landscaping COD

Ace Appliances, Victoria BC Coin Operated Washer/ Dryer 5 year lease

g. Licences, Permits, and Insurance

1. Name Search/ Name Registration / Annual Business License

2. Business Insurance

3. WCB

4. Chamber of Commerce Membership

4. Organizational Plan: Management and Staffing

a. Management and Personnel:

Mr. Russell Sam has been working with BC Parks Provincial Campgrounds at the

Cathedral Grove Resort & Campground as a site attendant from 1996-2002 and was responsible for all aspects of operations and site maintenance. Prior to this Russell was a fisherman for ten years and has an excellent knowledge of the local waters and Tla-o-qui-aht history and culture. Russell will be the campgrounds full-time Manager with Mr. Dan Sam acting as the site’s full-time Assistant Manager.

Mr. Dan Sam has been working as a counsellor with the Tla-o-qui-aht First Nations for ten years and holds his counselling degree from Kwantlen College. He has worked extensively with Russell to clear the land and plan all aspects of operations. Prior to this Dan has five years experience as a fisherman. Dan will be responsible for carrying out equipment, electrical, and plumbing repairs on the property, painting and grounds work, etc.

Both Russell and Dan Sam’s resumes and certificates are attached in the appendices of this document.

5. The Marketing Plan and Competition

a. Overall market:

Within the overall market, Harwood Campgrounds primary target market is from the growing number of tourists from Canada and the United States. Within BC the tourism market is the second strongest industry and camping represents 13% of this market. In 1999 BC enjoyed a record 22.3 million visitors and tourism revenues reaching a new high of $9.2 billion, up 4.9 percent over 1998.  Further, BC Statistics also reported that Harwood Campgrounds two primary activities of developed camping and hiking is anticipated to experience a 49% and 57% growth from 1995-2050. In addition, a BC Tourism study completed in 1998 found that eco-tourism in British Columbia generated $892 million in revenue in 1997 and employed more than 13,000 people, an 11% increase from the previous year. The second strongest area in tourism in BC is aboriginal tourism. In addition, the Canadian Tourism Council also stated that a survey conducted indicates that 25% of the international tourists showed interest in cultural experiences.

Currently, there are over 230 campsites in B.C. Provincial Parks and numerous private ones, 23% of these on Vancouver Island. The total number of recreational areas, provincial parks and ecological reserves equals a little more than 800. Most campsites are either within or next to provincial parks. Provincial park campsites recorded 2.6 million visits in 2001, down from the year before. Vancouver Island parks, however, bucked the downward trend, with visits increasing by two percent in 2001. Campgrounds on the Island logged 489,000 visits and parks recorded 3.8 million day trips that year. On average, mid-Island campsites record an average of 61,000 overnight visitors each season.

b. The Target Customers

Harwood Campground’s target customers are from the Greater Vancouver Regional District and Vancouver Island. Studies show BC campground visitors are mostly BC residents, tourists from nearby Alberta and the Yukon and from just south of the border in the U.S. The statistics reflect a growing number of American visitors, who feel safe traveling in Canada. Baby boomers are also a growing market. The average age of campground visitors is 35 to 55. Most visitors have a slightly higher than average disposable income (money to spend after all expenses are paid), with a family income of about $80,000 plus annually. Many visitors to campgrounds are families, with parents ranging from 40 to 55 and children averaging five to 15. This market segment has an annual income of from $60,000 to $80,000. The RV market, mostly retirees, has an average income of $45,000.

The primary market segments for the Harwood Lake Campground are families from nearby Victoria region and the Lower Mainland. Victoria area has a population of 335,000, while the Lower Mainland now has nearly 1.9 million. In BC 6 out of 10 families have children living at home, more specifically, 42% of all families in the province have children between the ages of 6 -17. This group will form the majority of clients that Harwood Campground will appeal to.

c. Marketing Strategy

Harwood Campgrounds will adopt a strategic marketing campaign which includes; brochures, a BC ferries agreement, a website, and networking within the region to schools and the Chamber of Commerce.

Harwood Campgrounds will feature the campgrounds as a safe, family oriented camping experience in Tofino on the beautiful east coast of Vancouver Island where campers can go whale watching and on fishing tours as Gray Whales migrate past Tofino on their way to their summer feeding grounds in the waters of Baja Mexico. Guided cultural hiking tours will be offered year round when even in the winter this area is renowned for its spectacular winter ocean storms, which would be a marketing feature for long-term RV campers.

The site is only 4km. away from the Pacific Rim National Park which features many boardwalks, a world famous old growth rainforest, and Longbeach where surfers challenge the breakers, natural hot springs in Hot Springs Cove, and the archipelago of islands in beautiful Clayquot Sound where kayakers abound along with scuba divers and underwater snorklers.

The company will track the marketing methods to optimize the effectiveness by asking clients how they heard of the camp and by maintaining their records, and sending annual postcards inviting them to return with a “wish you were here” note signed by the owners. These postcards will also act as the company’s brochures and will be designed to the specifications as required by BC ferries where they will be placed. The BC Ferries agreement will allow the company to place their brochures on the ferries where there are very high numbers of tourists along the ferry routes that bring tourists to the Island, as identified in the contract.

Further the company will establish a website targeted to Canadian and American tourists featuring many regional aesthetic features such as the Gray Whales, First Nations artwork images that backdrop the cultural hiking tours and images of the site, and the beachfront with brilliant sunsets. Clients may call directly or email their inquiries or reservations to the campgrounds directly. To ensure the safety of credit card payments, to minimize the initial website costs and increase customer service clients will be called to provide their credit card numbers for deposit.

Company business cards will have an invitation to visit on the back for each of the Principals. These will advertise and offer 1 night free camping during low season (September - April), as an invitation to go camping at their site.

Finally the companies networking strategy includes networking within the regional school districts and the Chamber of Commerce.

d. Pricing Strategy and Target Sales

Harwood Campgrounds will offer the following services, which are competitively priced within the industry for the range of on-site amenities offered:

• 10 RV Site hook-ups, fully equipped at $ 25.00 per night or $600.00 per month for one month and over long term rates, and

• 20 Tent sites at $ 22.00 per night.

• Guided Cultural Hiking Tours for groups of six or more at $10.00 an hour, per person

• Fishing Tours for groups of six or more at a rate of $20.00 an hour, per person

Campgrounds are a seasonal business, with modest increases in demand in April and May, a sharp rise in June, and a peak in demand in July and August. September sees a steady decline as the season winds down. August is an especially high camping month, accounting for 33 per cent of provincial campground use. The average length of stay is three to four days. Harwood Campground will take advantage of peak tourist seasons and BC Ferries tourism traffic. The company will also offer special promotional rates to targeted schools in the Victoria region and Lower Mainland.

The industry has previously been dominated by over 230 provincially owned campsites. Today, private campgrounds are on the rise and tend to offer better facilities. During the peak camping season in July and August both public and private campsites are booked to full capacity in an industry where demand outstrips capacity.

During summer peak months it is expected that both RV and tent sites will have a gradual curve in revenues from April and decline in late October. During the winter months it is conservatively estimated that three RV long-term residents will be booked.

Cultural hiking tours and fishing tours - as untested products - are conservatively estimated to result in less than 3% gross revenue per year. Annual sales are anticipated to increase by 10% per year for the ten RV pads, however due to the limit of tent sites sales these annual revenues are not anticipated to increase until the company can expand to develop more tent sites. Although RV pads are limited to ten, initially it is estimated that the company will secure a 10% increase in revenue per year, based upon long-term bookings.

All sales will require a 50% non-refundable deposit, which is industry standard, with the balance due upon arrival. The company will focus on customer service and will offer non-transferrable “camping coupons” for their next visit for persons who have any complaints with their camping experience.

6. Business feasibility and SWOT Analysis

a. S.W.O.T. Analysis.

|Strengths: |CP held lands, Tofino Beachfront location, Cultural component, competitive pricing, and management experience. |

|Weaknesses: |New entrepreneurs, limited marketing budget |

|Opportunities: |Expansion / Partnering opportunities. |

|Threats: |Existing seven competitors in the market (direct & Indirect) and |

| |Any new campgrounds that offer a First Nations cultural component. |

b. Viability and Long Range Plans:

Harwood Campgrounds will succeed based upon the companies prime location on the waterfront in Tofino, regional tourism draws, competitive pricing and lower operating costs as a result of no land lease or purchase costs. In addition the company will benefit from the industry experience of Mr. Russell Sam and the cultural component of operations that establishes a unique market advantage within the industry.

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